This article investigates the short- and long-run causality issues between
natural gas consumption and economic growth in Korea by applying time-series
techniques. It employs quarterly data covering the period 1991&#8211;2008. Tests for unit
roots, co-integration, and Granger-causality based on the multivariate vector errorcorrection
models are presented. The results show that there is bidirectional causality
between natural gas consumption and economic growth in Korea. This means that
an increase in natural gas consumption directly affects economic growth and that
economic growth also stimulates further natural gas consumption.